FMN vs SCHD
FMN vs SCHD
Federated Hermes Premier Municipal Income Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 100 holdings.
Side-by-Side Comparison
| Metric | FMN | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.75% | 0.06% | |
| AUM | $16M | $103.7B | |
| Dividend Yield | 4.29% | 3.31% | |
| Holdings | 150 | 104 | |
| YTD Return | +3.51% | +24.26% | |
| 1Y Return | +9.90% | +31.38% | |
| 3Y Return (annualized) | +7.05% | +15.08% | |
| 5Y Return (annualized) | -2.30% | +9.72% | |
| Volatility (annualized) | 14.7% | 13.6% | |
| Max Drawdown | -53.4% | -33.4% | |
| Fund Family | Federated Hermes | Charles Schwab Asset Management | |
| Category | Tax Preferred | Equity | |
| Inception | Dec 20, 2002 | Oct 20, 2011 |
FMN vs SCHD Performance
Federated Hermes Premier Municipal Income Fund (FMN) is a ETF from Federated Hermes and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year FMN returned +9.90% while SCHD returned +31.38%. Year to date, FMN is up 3.51% versus a gain of 24.26% for SCHD.
Over three years, FMN compounded at +7.05% per year against +15.08% for SCHD; over five years the annualized figures are -2.30% and +9.72% respectively. Across the full 15-year window we track, SCHD has the edge at +11.39% annualized vs -0.21%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FMN has been the more volatile fund, with annualized monthly volatility of 14.7% compared with 13.6% for SCHD. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -53.4% for FMN and -33.4% for SCHD. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.35. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FMN charges 0.75% per year while SCHD charges 0.06%. On a $10,000 position that is $75 vs $6 annually, a gap of $69 per year that compounds over a long holding period. On income, FMN currently yields 4.29% against 3.31% for SCHD.
Holdings Overlap
FMN and SCHD share 0 holdings out of 185 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FMN or SCHD?
FMN has an expense ratio of 0.75% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $69 per year of difference.
Which performed better, FMN or SCHD?
Over the past year FMN returned +9.90% vs +31.38% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), FMN annualized -0.21% vs +11.39% for SCHD. Past performance does not guarantee future results.
Which is riskier, FMN or SCHD?
FMN has been the more volatile fund at 14.7% annualized versus 13.6% for SCHD. Worst drawdown: FMN -53.4% vs SCHD -33.4%.
Should I hold both FMN and SCHD?
FMN and SCHD have a monthly-return correlation of 0.35, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FMN and SCHD?
FMN and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 185 unique securities.
Which pays a higher dividend, FMN or SCHD?
FMN yields 4.29% while SCHD yields 3.31%, so FMN currently pays the higher dividend yield.
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